Resolution 14-101 Approving a New Sublease at the Airport Terminal for Hertz/Pioneer Car Rental, Inc.

CITY OF HOMER

HOMER, ALASKA

                                                                                                                                  City Manager

RESOLUTION 14-101

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, APPROVING A NEW FIVE YEAR SUBLEASE AT THE HOMER AIRPORT TERMINAL FOR HERTZ / PIONEER CAR RENTAL, INC., APPROVING A NEW OWNER, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE APPROPRIATE DOCUMENTS.

               WHEREAS, The John Thompson, dba Hertz/ Pioneer Car Rental wishes to sell his business to Brian Berens; and

               WHEREAS, John Thompson has a current sublease with the City of Homer with the term beginning  May 1, 2012 and ending December 31, 2016; and

               WHEREAS, The State of Alaska DOT does not allow subleases to be assigned; and

               WHEREAS, The buyer has formally applied for a new sublease, and requested a new term of five years; and

WHEREAS, Hertz/ Pioneer has been an excellent, long-term  tenant at the airport terminal, has made substantial investments in its business over the years, generates jobs, spin-off economic activity, lease revenue, and sales tax revenues; and

WHEREAS, The Lease Committee reviewed the application at its meeting on September 16 and found the application to be complete, the applicant to be qualified, and recommends approval; and

               WHEREAS, The Administration recommends Council approval of a new five year sublease.

NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby approves a new five year sublease at the Airport Terminal for Hertz/ Pioneer Car Rental, Inc., approves the new owner, and authorizes the City Manager to execute the appropriate documents.

BE IT FURTHER RESOLVED that the sublease shall be subject to approval of the State of Alaska DOT.

               PASSED AND ADOPTED by the Homer City Council this 22nd day of September, 2014.

                                                                                          CITY OF HOMER 

                                                                                          ____________________

                                                                                          MARY E. WYTHE, MAYOR 

ATTEST:

___________________________

JO JOHNSON, MMC, CITY CLERK  

Fiscal Note: Average Lease Revenue per year $29,530.